Chapter 18

Between B and C, C is preferred because it offers a higher expected return for the same level of risk. Therefore, asset B is inferior and is dominated by A and C. P5.15 Suppose an investor has an investment portfolio comprised of 1,000 shares of LEH (Beta = 2.04) at 31.40, 100 FSLR (Beta = 0.03) at 288.50, and 5,000 of EFTC (Beta = 1.09) at 3.95. ................
................